Iraq announces its oil plan as crude prices rise to record levels

Iraq announces its oil plan as crude prices rise to record levels

2021.10.17 – 10:08

Iraq announces its oil plan as crude prices rise to record levelsBaghdad – people

The Ministry of Oil confirmed, on Sunday, that Iraq aims to achieve the highest financial revenues by adhering to the OPEC Plus agreement.

The official spokesman for the ministry, Assem Jihad, said in a statement to the official newspaper, followed by “Nass”, (October 17, 2021), that “Iraq was one of the active members in reaching an agreement to reduce production for OPEC Plus, after the great recession that hit the global economy as a result of the repercussions of the spread of Covid-19.” 19, and caused by the inflation of the oil surplus in global markets and the decline in demand for crude as a result of countries’ actions to restrict the movement of their citizens, land and air transport, the decline of the industrial sector and other negative repercussions from the spread of the epidemic.

Jihad added that “the commitment of the producing countries in OPEC and OPEC Plus to reduce production led to their success in controlling the oil surplus in global markets, and raising the price of a barrel below $20 to current prices, as OPEC and OPEC Plus hold their periodic and emergency ministerial meetings as required.” The conditions and developments of the oil market, preceded by meetings of the governors (representatives of the producing countries in OPEC), and they discuss the developments of the oil market and review reports for the concerned authorities and research centers in OPEC, and in light of this it submits its recommendations to the ministerial meeting.

He explained that “challenges for the oil market are still present, due to the lack of final control by the countries of the world on the Corona virus and new strains, as well as other circumstances, including security and political tensions, economic conflicts, natural conditions, and others in multiple regions of the world,” noting that “it requires dealing with Caution on the part of the oil-producing countries with the changes in the oil market, and therefore the situation of the oil market can be described as (fragile) as a result of its great influence on the circumstances and variables.

Jihad continued, “The strategy of OPEC and OPEC Plus limits production to the end of 2022 in order to achieve more stability and balance in the oil market,” stressing that “Iraq aims to achieve the highest financial revenues by adhering to the agreement.”

Regarding the prices of Iraqi crude oil, Jihad explained that “the price of Iraqi oil and the producing countries depend on the monthly price of the exported oil and is not subject to daily changes. It achieved significant financial revenues for the state treasury by exporting smaller quantities of crude oil compared to the quantities previously exported, which proves the ministry’s success in implementing its plans and directions.

nasnews.com